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The Do's and Don'ts of Buying a Car Privately

About 87 percent of Americans dislike something about shopping for cars at dealerships, and more than half would rather buy or sell a car from home. If you’re considering buying a car privately — perhaps you’re looking for a particular vehicle or you simply find a seller with the right car at the right time — follow these do’s and don’ts to make a private purchase a happy transaction for both sides.

When you’re looking

Do your research. Know what type of vehicle you’re looking for and what buyers typically pay for a certain model in a given condition. (Sites such as Kelley Blue Book and Edmunds are well-respected resources.) There may be less room to haggle with a private seller — remember, he or she has the same information as you do — but a little knowledge can help you make an offer that’s fair.

Don’t overlook red flags. Never wire money in advance, for example. Ask to see the title, which is a way for the seller to prove ownership. And if the car is priced suspiciously low, walk away.

When you’re ready to buy

Do investigate the vehicle’s history. While a car dealership may often provide information on a previous owner or there may be a partial warranty that comes with a purchase, private transactions are typically “as is” — meaning any problems may be your responsibility. Look up a vehicle history report from a service such as Carfax (you’ll need the VIN number) to uncover issues such as past accidents or flood damage that sellers may not be forthcoming about.

Don’t skip the prepurchase inspection. Take the vehicle to your mechanic. For about $100, you may find out about a potential problem or future repair that may cost you thousands of dollars.

When you’re completing the transaction

Do get your paperwork in order. Check with your state’s motor vehicle department for specific regulations. You may need to obtain an emissions test or an odometer disclosure statement form from the seller, or even have the title notarized, for example. Also, check that the registration is up to date; if not, you may incur late fees.

Don’t show up to the sale with cash. Work with an escrow service to facilitate the payment or conduct the transaction at your financial institution.

"The Do's and Don'ts of Buying a Car Privately" State Farm Simple Insights. Retrieved from https://www.statefarm.com/simple-insights/auto-and-vehicles/the-dos-and-donts-of-buying-a-car-privately


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